Some questions about GHA's plans

Mayor Joe Jaworski and council members:

I’m writing this letter on behalf of the Galveston Chamber of Commerce board of directors and its 850 business members.

On Oct. 21, 2009, Fred D. Raschke, chair of the Galveston Chamber Board, sent a letter to then-Mayor Lyda Ann Thomas and Galveston City Council members regarding the chamber board’s resolution regarding housing.

The letter stated the chamber board recognized a need for subsidized housing options for current and former Galveston residents displaced by natural disaster who wish to return, and that redevelopment plans formulated by the Galveston Housing Authority, as the largest developer on the island, will have a profound effect on future city development, the business community and the quality of life for all Galveston’s neighborhoods.

The letter also said the chamber board’s preferences for home-ownership over renters; lower-density over higher-density facilities; mixed income residents/mixed-use development and an increase in the number of GHA board of directors.

Since that resolution, the chamber held numerous meetings with the GHA, participated in public forums, hosted meetings, attended debates and listened carefully to the discussions at both workshop and city council meetings.

Regretfully, after numerous requests for additional information, we still don’t have a market study, needs assessment or business plan(s). Furthermore, requests for clarification on the city and/or county responsibilities, number of units/houses and the associated legal issues have gone unanswered.

On July 25, the Galveston Chamber of Commerce board of directors urged the city council to establish as its highest priority the effort to secure recovery funds for housing and infrastructure from both FEMA and CDBG funds. The board believed there was no more significant issue facing Galveston during the next several years.

Further, the chamber urged the city council to select a permanent management team that would understand this goal of securing recovery funding and had the experience and expertise to work successfully to achieve that goal.

The chamber’s Advocacy Committee met July 21 and heard a special presentation on housing proposals, presented by Ms. Deyna Sims, with the GHA.

After the presentation, the committee members were in agreement that the Advocacy Committee would need to wait upon the completion of a new market study before recommending a resolution of support to the chamber board. Results of the study were to be provided to the Advocacy Committee.

To date, the chamber has not received a copy of the study from McCormick Baron Salazar.

The chamber staff has received an overwhelming number of questions and concerns regarding the housing proposals and debate. These questions have been previously passed along to the various stakeholders and interested parties by chamber members and staff, but few definitive answers have been offered in return.

It appears that even when both sides speak about the subject, the only result is a series of unqualified and untested opinions. The questions remain unanswered, accompanied by a growing level of frustration among our members and residents in Galveston.

I have provided a list of outstanding questions from our business members. We are hoping our city leaders will be able to provide the answers to these questions as soon as possible. Furthermore, we believe our members will benefit from review of the market study and business plan (or plans) associated with the current housing proposals.

Clearly, the business plans should demonstrate the current housing proposals result in defined economic benefits for the city and residents of Galveston and an overall improvement in the quality of life.

Prior to the questions being answered and the market study and business plans being offered for public review, we cannot recommend the city move forward with any of the proposed plans of action by GHA or McCormack Baron Salazar.

V.J. Tramonte is chair of the Galveston Chamber of Commerce.

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Questions To The Mayor And Council

• Does the city council consider public housing to be an asset or a liability to the city of Galveston and why?

• Have any other cities in the county been approached about participating in the public housing program?

• Have any other cities in the county approached the city of Galveston about participating in the public housing program?

• Sixty-six percent of the students in Galveston school district are economically disadvantaged. Would adding additional public housing help GISD? What impact will additional public housing have on GISD?

• Will adding public housing encourage business development in Galveston now and in the future?

• How many low- to moderate-subsidized homes and apartments are on the Island?

• Would adding additional public housing increase or decrease crime? Would mixed-income housing increase or decrease crime? What impact is projected on the crime rate in Galveston with the addition of the public housing program? Are there studies?

• Will middle-income families want to live in the proposed mixed-income properties? Has a survey been taken? Is this included in the market study?

• Do you believe implementing GHA’s rebuilding plan (adding an additional 1,287 units) will increase or decrease the number of vacant housing in the city?

• Do you believe implementing GHA’s rebuilding plan will increase or decrease rental income for existing property owners?

• How many total tax credited housing payments are paid out in Galveston? How does that number compare to other cities our size?

• Where is it mandated from HUD that we must build back 569 public housing units?

• Will the McCormick Baron Salazar developments be off the tax rolls?

• Who are the top 20 Section 8 landlords on the island? How many units does this represent?

• Are there any current studies regarding the Section 8 residents’ employment and their children’s school attendance?

• Can GHA guarantee the McCormick Baron Salazar developments will not all become public housing in the future?

• The Oaks consist of 20 duplex units at 45th Street and Avenue L. Of the 40 available units, 14 are vacant. How long have these units been available for use, and if there is such high demand, why are they not full?

• What is the plan to evacuate public housing residents in the event of a storm, and what is the estimated cost? Who will fund the necessary expenditures?

• Who pays for the insurance costs associated with public housing i.e. windstorm, flood, contents etc. …?

• Will felons be allowed to live in the housing developments on the island?

• Will additional public housing enhance the quality of life on the Island?

• Will public housing create job opportunities by stimulating industrial, commercial and retail growth?

• Has a development agreement been signed with McCormick Baron Salazar?

• What will the impact be on the local health care providers and the county’s health care system?

• Has the cost of the health care impact been projected?

• We have heard quotes for the construction of units varying from $150,000 per unit to $225,000 per unit from McCormick Baron Salazar. How much per square foot of floor space is the cost of construction? How does this compare to the cost of construction?

• Compared to nonfederally funded housing or those units funded by private investment, how much in taxes will be paid locally on similar property? We understand the land will be on a long-term, 40-year lease from GHA and will not be subject to taxes and that only improvements will be taxes. At what rate?

• Will proposed units provide the community with additional housing for the elderly?

• Will day care facilities be a part of the planned community?

• Who are the local partners for this development?

• Of the 569 “required” rebuilds, how many former residents of GHA are on the list for return to those units?

• As part of the Human Capital Program from McCormack Baron Salazar and its Urban Strategies division will you implement a “cradle to college” approach to education?

• Are the surveys being completed by or for the developer for their own project? Is the survey an arm’s length transaction? Has the survey been done by the same party for the developer as previous projects? Is the fox guarding the hen house?

— Galveston Chamber of Commerce members